1Participatory Budgeting in Brazilian Cities: Limits and Possibilities in Building Democratic Institutions*

Like many recent democracies, Brazil has embarked on the task of strengthening its democratic institutions. As a result, several experiments have been carried out at all levels of governments aiming at, among other things, increasing the participation of citizens in the decision-making process. One of these experiments is that of participatory budgeting at the local level which sets aside part of local revenues for allocation to be decided upon by local citizens. This paper reviews the literature on participatory budgeting in Brazil, analysing the two most well known cases, those of the cities of Porto Alegre and Belo Horizonte. Using secondary data, it describes the main features of these two experiments, discusses their results, and debates the claims made by the literature on the cases. The paper argues that although some of the claims and results regarding both experiments deserve more research, the experience does allow low-income segments of neglected areas of both cities to decide on investment priorities in their communities. Furthermore, it also argues that encouraging participation in highly unequal societies like Brazil should be valued more for heightening citizenship rather than for the material gains it may bring to some areas of the cities. 1